News article

5 December 2012

Responding to the Chancellor's Autumn Statement today, the Food and Drink
Federation (FDF) welcomed the changes to Capital Allowances and the intention
to
further reduce the rate of corporation tax.

FDF Director General Melanie Leech said:

“As the country's largest manufacturing sector and with a vision shared with
government to grow the sector by 20% by 2020, FDF welcomes the targeted
measures
in
today's Autumn Statement.

“The Chancellor's announcements on increasing the Annual Investment Allowance
and reducing the headline rate of Corporation Tax should both stimulate
business
investment. This is great news, particularly for an industry which encompasses
businesses of all sizes – from global companies choosing to invest in the UK
through to SMEs looking to grow their operations in response to growing
overseas
demand for food and drink products.

“Our industry has had seven consecutive years of export growth and we know we
can continue to expand the export of high quality British food and drink. We
are
pleased that UKTI has recently strengthened its commitment to support food and
drink businesses and welcome today's announcement of its funding increase and
of
the new export finance facility which should also help even more companies to
grow through export.”

“In addition, the Chancellor's move to abolish the proposed hike in the fuel
price next month is a welcome announcement that will help both shoppers and
businesses who are already feeling the pinch of rising prices.”

Note to Editors:

The Food and Drink Federation (FDF) is the voice of the food and drink
manufacturing industry – the UK's largest manufacturing sector. For more
information
about FDF and the industry we represent visit: www.fdf.org.uk